Recently, in the Matter of Navistar MaxxForce Engines Mktg., Sales Practices, & Prod. Liab. Litig. (“Navistar”), the Seventh Circuit Court of Appeals was asked to adopt the “reasonable indication” approach, which would allow class members to opt out of a class based on any reasonable indication of their desire to exclude themselves.  Finding the application of such an approach to be impractical, the court refused to adopt it.

Navistar involved the settlement of a class action in which class members accused Navistar of selling trucks with defective engines.  Prior to approving the settlement, the district court required that all … Continue Reading

Last March, dean of class action scholarship John Coffee Jr. published an article in the Columbia Law Review titled "Litigation Governance: Taking Accountability Seriously." Coffee’s argument is that, from a corporate governance perspective, there are two ways to keep an organization’s leaders accountable: "exit" and "voice." In other words, judges and legislators can make it easier for shareholders to leave an organization, or they can give them a greater voice in governing it. He then tries to apply those principles to class actions and other forms of collective redress. Specifically, he worries about how the current class-action regime … Continue Reading